By understanding the process and the doing things in the proper order you can count on a smooth and enjoyable experience.
Step 1. Talk with your Mortgage Professional
When communicating with your Mortgage Professional make sure to answer all questions as accurately as possible even if you think particular information may not be needed. By having a complete and accurate understanding of your situation we will be able educate you on all of your options and offer the best service possible.
After reviewing your file we will be able to inform you on what programs are available to you and the differences between those programs. We will be able to accurately calculate how much you qualify for and relate sales prices to monthly payments so you can shop for a home that fits within your financial comfort zone.
By completing the Mortgage application process and providing all necessary documentation you will be ready to start shopping for your home. With this complete we will be able produce a pre-approval letter that will be needed to make an offer.
Step 2. Select a Real Estate broker to help you with finding a property
Typically when a house is listed for sale the sales price included the Real Estate brokers commission so you are not paying for that service the seller is. Often buyers think they can save money by not using a Real Estate broker but what ends up happening the the Real estate broker that has listed the property for sale receives all the commission that was intended to be split between the listing broker and the buyers broker. This is often called “double dipping” and can create problems since it is impossible for that broker to have both the sellers and buyers best interest in mind.
We work with many Real Estate brokers everyday and there is a difference between them all. If you would like we would be more than happy to recommend a few for you to choose from.
Step 3. Make an offer
When you have identified a property that your are interested in making an offer on your Real Estate broker will help you determine out how much to offer and then write that offer for you.
Your offer will be either be accepted or the sellers may counter offer.
Once a price has been agreed upon and the offer has been accepted you will be required to make an earnest money deposit. The Earnest money deposit is held by the Title company and shows good faith on your behalf that you are planning to complete the purchase. These funds are either contributed into the transaction as part of the down payment or closing costs and for zero out of pocket loans these funds are returned to you at closing.
Strep 4. Contingency period
Review the preliminary title report so you are aware of any easements and other specific detail about the properties history.
Order home inspection
Once the home inspection is complete and any needed repairs are agreed upon between the buyer and seller it is time to order an appraisal
Step 5. Home Owners Insurance Coverage
Shop insurance companies and decide who you would like to hold your Home Owners insurance policy.
Inform you Mortgage Professional of who you intend on using for Insurance and they will obtain a binder on the lenders behalf
Step 6. Sign Closing Documents
When all related documentation is reviewed by the lender they will send the final loan documents to the Title company. The Title company will work up a settlement statement that shows all the final numbers.
Obtain a cashiers check for the amount need to close based on the settlement statement and take that to the Title company when you go sign the final loan documents
Step 7. Funding your loan
After all parties have signed all necessary documents the Title Company will send the sign documents back to the lender for there final review.
The Lender wires the loan funds to the Title Company so they can distribute the funds as needed and records the Deed with the County Recorders office.
Step 8. Obtain your keys and move in
Congratulations! At this point you are officially a home owner.